Leveraging wealth transfer using a sale to a defective grantor trust
|
|
- Beverly Paul
- 6 years ago
- Views:
Transcription
1 Sale to a Grantor Trust Strategy Leveraging wealth transfer using a sale to a defective grantor trust Not a bank or credit union deposit, obligation or guarantee May lose value Not FDIC or NCUA/NCUSIF insured Not insured by any federal government agency LIM /16
2 Transferring assets to future generations in a tax-efficient manner Your hard work has paid off. You ve accumulated highly appreciated and incomeproducing assets such as a closely held business or real estate assets. Now you are concerned that these assets may be subject to transfer taxes, which can consume a significant portion of your wealth. You are also considering the purchase of life insurance held outside of your taxable estate in an irrevocable life insurance trust (ILIT) an estate-planning technique where the death benefit will generally be free of estate and income taxes. However, if you also want to efficiently transfer the future growth and income of your highly appreciated assets out of your estate, you could consider selling an asset to the trust using life insurance. A sale to a grantor trust is a very complex procedure and may have uncertain tax consequences. This brochure is designed to provide general information about the subject matter. It is not intended to give investment, legal, accounting, tax or estate planning advice. You should consult your own professional advisors for these services to determine whether the strategies or products discussed in this brochure would benefit your particular situation. Why use a sale to a defective grantor trust? In a typical ILIT strategy, you (or you and your spouse) establish the trust as the grantor(s) and then make gifts of cash or liquid assets to fund the purchase of an insurance policy. The trust is intentionally defective for income tax purposes, making the grantor(s) responsible for the trust s income taxes and leaving all of the trust s assets available for the beneficiaries. 1 Gifts are made in the form of annual gift tax exclusions and/or lifetime gift tax exemption(s). With the death benefit outside of your taxable estate, the proceeds are received by the trust free of federal estate and income tax. However, you may have limitations while making gifts, and you may be concerned about potential gift tax liability and losing control of the assets. As an alternative, selling the asset to the trust in return for an installment note can remove any of the asset s future growth and income from your estate by freezing the value of the asset included in your estate. To avoid adverse tax treatment of trust proceeds, the trust should be drafted by an attorney familiar with such matters and taking into account income and estate tax laws. 1 In a defective trust, the grantor(s) are treated as the owner of the trust for federal income tax purposes, but not for estate tax purposes. Refer to IRC Sale to a Grantor Trust Strategy
3 The sale to a defective grantor trust solution In a sale arrangement, the grantor(s) you or you and your spouse seed the trust with an initial gift of liquid assets or cash equal to 10% or more of the value of the asset being sold to the trust. 2 The grantor(s) then sell the asset at fair market value (less a valuation discount, if applicable) to the trustee using an installment note. The promissory note is typically structured as an interest-only sale with a balloon payment of principal at the end of the note s term. The interest rate of the note should be at or above the current Applicable Federal Rate (AFR). 3 During the term of the note, the asset held in the trust generates income that is used to pay the interest due, and excess income is used to fund life insurance premiums and/or to repay the note. Upon death, the principal balance of the note may be repaid from the death benefit proceeds or earlier from trust assets. How the strategy works Grantor(s) Establishes and seeds the trust with a minimum gift of 10% of the asset s value sold. 2 The asset is then sold to the trust at fair market value for an interest-only note. Sells income-producing asset Note at applicable AFR rate Interest payments on note Note repayment Intentionally Defective Grantor Trust (IDGT) Owner and beneficiary of the policy on grantor s life. Trustee uses income from the asset and/or additional gifts to make interest and principal payments on the note, and excess income pays premiums to fund life insurance policy. Pays income tax on IDGT income 1 Pays death benefit Insurance Policy Pays premium 2 The trust should be seeded with cash or liquid assets equal to a minimum of 10% of the value of the installment note. See Letter Ruling Any gift to an ILIT that is intended to be a present interest and completed gift must be made to an ILIT, which contains Crummey power language. The applicable federal estate tax exclusion amount (indexed for inflation) is $5.45 million per individual in The estate tax is unified with the federal gift tax and generation-skipping transfer, such that in 2016, the lifetime gift tax exclusion and generation-skipping transfer tax is $5.45 million (indexed for inflation) and the maximum tax rate for both of these taxes will be 40%. (Source: Frequently Asked Questions on Gift Taxes, IRS, accessed April 2016: businesses/small/article/0,,id=108139,00.html). For current information and an assessment of your unique situation, please consult your tax professional. 3 The AFR is published monthly by the IRS. If the specified note interest rate is less than the AFR, then the difference is imputed for income or gift tax purposes. Sale to a Grantor Trust Strategy 3
4 Promissory note structure The promissory note is often structured as an interest-only sale with a balloon payment of principal at the end of the note s term. Interest should be charged on the note at or above the appropriate Applicable Federal Rate (AFR) to avoid any federal income or gift taxes. 4 The length of the note term determines the appropriate AFR and falls into three categories: Short-term Mid-term Long-term a note term not > 3 years a note term > 3 years and < 9 years a note term > 9 years Note repayment / exit strategies A termination or repayment plan is a key element to help reduce the overall risk of the promissory note arrangement. Several strategies are available: Death Benefit Upon death, the proceeds can be used to repay the outstanding note balance, plus any interest due. Other IDGT Resources The IDGT may repay the outstanding note from other trust assets. Policy Cash Values If the policy has sufficient value that exceeds the outstanding loan balance, the IDGT trustee can withdraw and/or borrow policy cash values to repay the outstanding note. The removal of policy cash values will reduce the death benefit and may cause the policy to lapse. 5 Additional Gifts Over time, it may make sense to forgive all or part of the IDGT s repayment obligation. This is a taxable gift and may reduce the grantor s lifetime gift tax exemption, if available. 6 4 The AFR is published monthly by the IRS. 5 Loans and withdrawals are only available prior to the death of the grantor(s) and will reduce the policy death benefit and cash surrender value. This may cause the policy to lapse and may be taxable. Withdrawals or loans on modified endowment contracts (MECs) may be subject to federal income tax and a 10% IRS penalty on amounts taken prior to age 59½. 6 Refer to footnote 2 on page 3 for source information. 4 Sale to a Grantor Trust Strategy
5 The benefits of a sale to a grantor trust strategy Using a sale to a defective grantor trust using life insurance has several advantages: Frozen asset value In many cases, the value of the asset or property sold to the trust is frozen at the fair market value. Any future appreciation is passed on to trust beneficiaries without gift, estate or generation-skipping transfer taxes. Discounted sale The asset may be sold to the trust at a discount due to the lack of marketability and control. 7 Low interest rates In the current low interest rate environment, the Applicable Federal Rates (AFRs) may be attractive enough to lock in a rate by taking a note from the trust. The trustee can then use excess income after interest and repayment of the note to fund life insurance premiums. Minimized capital gains tax Highly appreciated assets sold to the trust by the grantor(s) may be transferred without incurring capital gains to the grantor(s). 8 No income tax Interest payments on the note are not subject to income tax if your trust is a grantor trust for income tax purposes. 9 Reduced taxable estate Tax-free gifts to the trust can help reduce the size of your taxable estate. Currently, individuals may gift up to $14,000 annually (per beneficiary), and married couples may double the annual gift to $28,000 (per beneficiary). Plus, as long as you remain under the $14,000 limit, these annual gifts do not count against your $5.45 million lifetime cumulative gift-tax exemption or your $5.45 million estate-tax exemption The value of a closely held corporation, a partnership, or other asset may qualify for a valuation discount due to a lack of marketability and/or a minority interest as owner may not have power to manage or control the asset. Valuation discounts should be documented by an independent professional appraiser. 8 No gain or loss is recognized on the sale to the trust as the grantor(s) are considered the same person(s) for income tax purposes. Refer to Revenue Ruling Note that interest income paid to you from the IDGT will not be treated as taxable income if the IDGT is established as a grantor trust for income tax purposes. Refer to Revenue Ruling Refer to footnote 2 on page 3 for source information. Sale to a Grantor Trust Strategy 5
6 Key considerations of a sale to a grantor trust strategy Note interest The note interest paid by the trust is not deductible. Asset control The grantor(s) should retain no control over the asset sold to the trust in order to prevent inclusion in the estate. Refer to IRC Asset valuation Hard-to-value assets or appropriate valuation discounts should be documented by an independent professional appraiser. Liquidity The grantor(s) must have sufficient cash flow available to pay the ongoing income taxes of the trust. Estate tax The note repayment and outstanding interest will be included in the grantor(s) estate for estate-tax purposes. Is the sale of an asset to a defective grantor trust right for you? You may benefit if: You wish to minimize or eliminate gift taxes. You own one or more income-producing assets that have the potential to highly appreciate. You want to efficiently transfer assets to future generations. You have used up or don t want to use either your lifetime gift tax exemption(s) and/or gift tax annual exclusions. You d like to leave a larger legacy to your beneficiaries. If any of these apply to you, contact your insurance professional for more information. 6 Sale to a Grantor Trust Strategy
7 Sale to a Grantor Trust Strategy 7
8 Symetra Life Insurance Company th Avenue NE, Suite 1200 Bellevue, WA Symetra is a registered service mark of Symetra Life Insurance Company. Life insurance is issued by Symetra Life Insurance Company, th Avenue NE, Suite 1200, Bellevue, WA Products are not available in all U.S. states or any U.S. territory. Guarantees and benefits are subject to the claims-paying ability of Symetra Life Insurance Company. Neither Symetra Life Insurance Company, any of its affiliates, insurance producers or advisors give tax or legal advice. Consult your attorney or tax advisor for more information.
Navigating a Life Insurance Funding Strategy
Navigating a Life Insurance Funding Strategy A Supplemental Illustration Prepared for Valued Client Presented by Premier Producer Premier Brokerage 1 Sales Drive Anytown, USA 98765 Life insurance is issued
More informationMinimize Taxes, Maximize Your Legacy Using Life Insurance
Minimize Taxes, Maximize Your Legacy Using Life Insurance Designed For Valued Client Presented By Premier Producer Symetra Life Insurance Company 777 108th Avenue NE, Suite 1200 Bellevue, WA 98004-5135
More informationReward and Retain Valued Executives using Life Insurance
Split-Dollar Plan Reward and Retain d Executives using Life Insurance A Supplemental Illustration Prepared for Key Executive Prepared by Premier Producer Premier Brokerage 1 Sales Drive Anytown, USA 98765
More informationMaximize The Value of Your IRA Using Life Insurance
Maximize The Value of Your IRA Using Life Insurance A Supplemental Illustration Prepared for Valued Client Prepared by Premier Producer Premier Brokerage 1 Sales Drive Bellevue, WA 98004 Life insurance
More informationSale to a Grantor Trust (SAGT)
Sale to a Grantor Trust (SAGT) Advanced Markets Client Guide An innovative estate planning tool John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company of New York
More informationCreating a Supplemental Future Income Stream With Life Insurance
Creating a Supplemental Future Income Stream With Life Insurance A Supplemental Illustration Prepared for Valued Client Presented by Premier Producer Premier Brokerage 1 Sales Drive Anytown, USA 98765
More informationCompleting trust-owned life insurance reviews. Symetra UL-G Universal Life Insurance. Benefits of Trust Planning
Symetra UL-G Universal Life Insurance Benefits of Trust Planning Completing trust-owned life insurance reviews Not a bank or credit union deposit, obligation or guarantee May lose value Not FDIC or NCUA/NCUSIF
More informationWealth Transfer and Charitable Planning Strategies. Handbook
Wealth Transfer and Charitable Planning Strategies Handbook Wealth Transfer and Charitable Planning Strategies Handbook This handbook contains 12 core wealth transfer and charitable planning strategies.
More informationLife Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT
Life Insurance-Premium Financing BY MATT HEALY MANAGING DIRECTOR, CLIENT RISK MANAGEMENT Investment and insurance products are: NOT A DEPOSIT NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED NOT INSURED
More informationMinimize Taxes, Maximize Your Legacy Using Life Insurance
Minimize Taxes, Maximize Your Legacy Using Life Insurance A Supplemental Illustration Prepared for Valued Client Prepared by Premier Producer Premier Brokerage 1 Sales Drive Anytown, USA 98765 Life insurance
More informationGrantor Annuity Trust A LEGACY OPPORTUNITY IN A LOW INTEREST RATE ENVIRONMENT
Grantor Annuity Trust A LEGACY OPPORTUNITY IN A LOW INTEREST RATE ENVIRONMENT The Prudential Insurance Company of America 0266054-00005-00 Ed. 06/2016 Exp. 12/29/2017 ABOUT THIS BROCHURE This brochure
More informationEstate Freezing Techniques. For Producer or Broker/Dealer Use Only. Not for Public Distribution.
Estate Freezing Techniques Agenda Identify Potential Clients Qualified Personal Residence Trust (QPRT) Grantor Retained Annuity Trust (GRAT) Installment Sale to an Intentionally Defective Irrevocable Trust
More informationGive your beneficiaries an Edge
Enhanced Death Benefit Rider Give your beneficiaries an Edge Not a bank or credit union deposit, obligation or guarantee May lose value Not FDIC or NCUA/NCUSIF insured Not insured by any federal government
More informationEffective Strategies for Wealth Transfer
Effective Strategies for Wealth Transfer The Prudential Insurance Company of America, Newark, NJ. 0265295-00002-00 Ed. 02/2016 Exp. 08/04/2017 UNDERSTANDING WEALTH TRANSFER What strategy to use and when?
More informationWEALTH STRATEGIES. GRATs and Sale to IDGTs: Estate Freeze Techniques
WEALTH STRATEGIES THE PRUDENTIAL INSURANCE COMPANY OF AMERICA GRATs and Sale to IDGTs: Estate Freeze Techniques FREQUENTLY ASKED QUESTIONS ESTATE PLANNING How do two of the techniques used by wealthy clients
More informationPreserving Family Wealth with an Estate Freeze. cn ING North America Insurance Corporation
Walton GRAT: Preserving Family Wealth with an Estate Freeze Thanks for sharing your time with me today. I d like to tell you about a powerful and flexible estate planning idea. This strategy is called
More informationAdvanced marketing concepts. Brought to you by the Advanced Consulting Group of Nationwide
Advanced marketing concepts Brought to you by the Advanced Consulting Group of Nationwide Breaking down and simplifying financial planning techniques When your clients have complex estate, retirement or
More informationTRUSTS & ESTATES ADVISORY
Estate Planning Techniques In A Low Interest Rate Environment Interest rates remain at historic lows and it seems that rates will not be rising as quickly as most commentators once thought. Consequently,
More informationGrantor Retained Annuity Trusts ( GRATs ) and Rolling GRATs. Producer Guide. For agent use only. Not for public distribution.
Grantor Retained Annuity Trusts ( GRATs ) and Rolling GRATs Producer Guide Introduction to GRATs and Rolling GRATs The Grantor Retained Annuity Trust ( GRAT ) is a flexible planning tool which can be used
More informationTypical Succession Scenario
Uplifting Gifting: Using Additional Exemption to Maximize Business Succession Planning Eric Green Robert Nemzin Richard Barnes October 21, 2011 1 Typical Succession Scenario Client has substantial portion
More informationTemporary Estate, Gift and GST Tax Laws Provide Unprecedented Opportunities in 2012
Month Year Temporary Estate, Gift and GST Tax Laws Provide Unprecedented Opportunities in 2012 BY RENEE M. GABBARD, LISA M. LAFOURCADE & MEGAN S. ACOSTA It appears that the current favorable estate, gift
More informationALI-ABA Course of Study Estate Planning in Depth
197 ALI-ABA Course of Study Estate Planning in Depth Cosponsored by Continuing Legal Education for Wisconsin (CLEW) of the University of Wisconsin Law School June 15-20, 2008 Madison, Wisconsin Sales to
More informationSpousal Lifetime Access Trust. Transferring wealth and retaining spousal access. Core Stories for Life. learn more about MetLife s
17.75 in. LIFE INSURANCE Equity Advantage Variable Universal Life is offered by prospectus only, which is available from your registered representative. You should carefully consider the product s features,
More informationAdvanced Sales White Paper: Grantor Retained Annuity Trusts ( GRATs ) & Rolling GRATs
Advanced Sales White Paper: Grantor Retained Annuity Trusts ( GRATs ) & Rolling GRATs February, 2014 Contact us: AdvancedSales@voya.com This material is designed to provide general information for use
More informationDouble Discounted Transfers
Advanced Markets planning perspective estate planning Double Discounted Transfers The Silver Lining After the Economic Downturn It seems clear that estate taxes are here to stay. For people who are likely
More information10/24/2016. Benefiting from Historically Low Interest Rates. Disclosure. Disclosure
Benefiting from Historically Low Interest Rates This material is for continuing education training purposes only. It is not intended to be a solicitation or offer of any company's specific product or policy.
More informationLeveraged Executive Bonus For Arthur Lee
Leveraged Bonus For Arthur Lee Presented By: [Licensed user's name appears here] Leveraged Bonus Funded With Indexed Universal Life Preface Background Leveraged Bonus is a financial technique used to reward
More informationTHE ESTATE PLANNER S SIX PACK
Tenth Floor Columbia Center 101 West Big Beaver Road Troy, Michigan 48084-5280 (248) 457-7000 Fax (248) 457-7219 SPECIAL REPORT www.disinherit-irs.com For persons with taxable estates, there is an assortment
More informationEstate Planning With Grantor Trusts: Leveraging GRATs and IDGTs to Minimize Taxes, Preserve and Transfer Assets
Presenting a live 90-minute webinar with interactive Q&A Estate Planning With Grantor Trusts: Leveraging GRATs and IDGTs to Minimize Taxes, Preserve and Transfer Assets THURSDAY, OCTOBER 15, 2015 1pm Eastern
More informationLoan-Based Private Split Dollar
Loan-Based Private Split Dollar For: Jerry Grant/Janet Grant Presented By: [Licensed user's name appears here] Loan-Based Private Split Dollar Preface Insured: Jerry Grant/Janet Grant Loan-based private
More informationIssues INSIGHTS AND. Wealth Transfer Strategies for Rising Interest Rates
Issues AND INSIGHTS May 2018 Wealth Transfer Strategies for Rising Interest Rates IN THIS ARTICLE Interest rates are a key component of wealth transfer strategies, and any changes in the rates will affect
More informationLoan-Based Split Dollar
-Based Split Dollar Preface This executive fringe benefit involves a series of employer-sponsored loans to a valued executive for the purpose of purchasing a cash value life insurance policy. It is designed
More informationAdvanced Wealth Transfer Strategies
Family Limited Partnerships (FLPS) Advanced Wealth Transfer Strategies The American Taxpayer Relief Act of 2012 established a permanent gift and estate tax exemption of $5 million, which is adjusted annually
More informationGrantor Trusts. Maine Tax Forum
Grantor Trusts Maine Tax Forum Jeremiah W. Doyle IV Senior Vice President BNY Mellon Private Wealth Management Boston, MA jere.doyle@bnymellon.com (617) 722-7420 November, 2017 1 Grantor Trusts AGENDA
More informationM&A Adding Value Through Pre-Sale Planning WS151896
M&A Adding Value Through Pre-Sale Planning Value Drivers That Drive Premium Valuation 3 Value Drivers That Drive Premium Valuation U.S. M&A Activity 2017 4 Value Drivers That Drive Premium Valuation Median
More informationHOW ESTATE & ASSET PROTECTION CAN SAVE MILLIONS
HOW ESTATE & ASSET PROTECTION CAN SAVE MILLIONS HOW ESTATE & ASSET PROTECTION CAN SAVE MILLIONS You should consider creating an Intentionally Defective Irrevocable Trust ( IDIT ) and gifting assets to
More informationSQUEEZE, FREEZE, & BURN: ESTATE PLANNING WITH 678 TRUSTS Written materials prepared by Marvin E. Blum, J.D./C.P.A.
777 Main Street, Suite 700 Fort Worth, Texas 76102 Phone: (817) 334-0066 303 Colorado St., Suite 2250 Austin, Texas 78701 Phone: (512) 579-4060 www.theblumfirm.com 300 Crescent Court, Suite 1350 Dallas,
More informationComprehensive Charitable Planning
Advanced Markets Client Guide Comprehensive Charitable Planning Charitable gifts that preserve personal wealth. Comprehensive Charitable Planning Giving to charity can provide many benefits and opportunities,
More informationACCESS TRUSTS. Using life insurance to accumulate, access and transfer wealth
ACCESS TRUSTS Using life insurance to accumulate, access and transfer wealth For transferring wealth, permanent life insurance can be an appealing strategy because it: Provides liquidity through a death
More informationComprehensive Charitable Planning
CLIENT GUIDE Advanced Markets Comprehensive Charitable Planning John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company of New York (John Hancock) LIFE-5175 1/17
More informationLife Insurance & Securing a Legacy Case Study
Life Insurance & Securing a Legacy Case Study John Hancock Life Insurance Company Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York)
More informationInvestment and Estate Planning Opportunities for High Net Worth Individuals in 2013
Investment and Estate Planning Opportunities for High Net Worth Individuals in 2013 Presented By: CPA, MST, AEP Keebler & Associates, May 2, 2013 Phone: (920) 593-1701 E-mail: robert.keebler@keeblerandassociates.com
More informationShared Dollar Life Insurance: An inter-generational approach to retirement planning
Shared Dollar Life Insurance: An inter-generational approach to retirement planning What will retirement look like for our children? If you are like most working people, from time to time you think about
More informationthe inside track EDUCATIONAL SERIES
EDUCATIONAL SERIES Imputed income and the straddle rule Group term life insurance Most employees appreciate when group term life insurance is offered as a pre-tax, payroll-deducted benefit they don t have
More informationSpousal Lifetime Access Trust Producer Guide. Transferring wealth. and retaining. spousal access
Spousal Lifetime Access Trust Producer Guide Transferring wealth and retaining spousal access Life. your waysm Lifeyour. way MetLife understands your business. We respect your entrepreneurial spirit as
More informationThe Use of Pass-Through Entities in Asset Protection and Wealth Transfer Planning
The Use of Pass-Through Entities in Asset Protection and Wealth Transfer Planning DANIEL W DALY III 2323 S. Shepherd, 14 th Floor Houston, TX 77019 713-979- 4701 daly@ohdlegal.com www.ohdlegal.com Judge
More informationSale to an Intentionally Defective Irrevocable Trust
Sale to an Intentionally Defective Irrevocable Trust Concept An Intentionally Defective Irrevocable Trust (IDIT) is an irrevocable trust established by a grantor generally for the benefit of the grantor
More informationABC s of Family Succession Planning
ABC s of Family Succession Planning By: Charles F. Adler Schneider, Smeltz, Ranney & LaFond, P.L.L. 1111 Superior Avenue, Suite 1000 Cleveland, OH 44114 (216) 696-4200 CAdler@ssrl.com Common Issues Financial
More informationFinancing strategies for single-insured life insurance owned by an irrevocable life insurance trust (ILIT)
Financing strategies for single-insured life insurance owned by an irrevocable life insurance trust (ILIT) Annual Basic description (all of the trust agreements used for these ILITs are assumed to be grantor
More informationLink Between Gift and Estate Taxes
Link Between Gift and Estate Taxes Each is necessary to enforce the other The taxes are assessed at essentially the same rates Though, the gift tax is measured exclusively while the estate tax is measured
More informationEstate and gift tax provision highlights
Legislative Update Tax Cuts and Jobs Act Estate and gift tax provision highlights On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (P.L. 115-97). Highlights of the key provisions
More information11/9/2012. Estate and Charitable Planning Before the End of IRS Circular 230. Historical Estate Tax Rates and Exemptions
Estate and Charitable Planning Before the End of 2012 SOL S. REIFER, J.D., LL.M. KYLE C. POST, J.D., LL.M. WRIGHT GINSBERG BRUSILOW P.C. 14755 PRESTON ROAD, SUITE 600 DALLAS, TEXAS 75254 972-788-1600 sreifer@wgblawfirm.com
More informationQualified Personal Residence Trust (QPRT)
Qualified Personal Residence Trust (QPRT) Overview A Qualified Personal Residence Trust (QPRT) can allow a homeowner to transfer a residence to other family members at a reduced gift tax cost while retaining
More informationSale to an Intentionally Defective Irrevocable Trust
Concept Sale to an Intentionally Defective Irrevocable Trust An Intentionally Defective Irrevocable Trust (IDIT) is an irrevocable trust established by a grantor generally for the benefit of the grantor
More informationPassing on family wealth without making gifts
Passing on family wealth without making gifts New wealth transfer opportunities As part of a year-end agreement to avoid the Fiscal Cliff crisis, Congress passed the American Taxpayer Relief Act of 0 (ATRA
More informationWhich Asset Transfer Strategy is Right for You?
Which Asset Transfer Strategy is Right for You? August 27, 2014 Larry Powell CSH Dave Benedetto Taft Mark Gaudet CSH Andy Woods Taft First Webinar: Is Estate Planning Still Important With A $5 Million
More informationUnderstanding Irrevocable Life Insurance Trusts
Understanding Irrevocable Life Insurance Trusts Understanding Irrevocable Life Insurance Trusts DISCUSSION TOPICS What is an Irrevocable Life Insurance Trust? How Does an Irrevocable Life Insurance Trust
More informationSuccession & Estate Planning Opportunities: Creating a Company Legacy
Succession & Estate Planning Opportunities: Creating a Company Legacy Presented by: Patricia Quintana-Perron, CPA, CHBC, CFP, PFS Cara Benningfield, CPA May 12, 2011 To Receive CPE Credit Participate in
More informationEstate Planning for Small Business Owners
Estate Planning for Small Business Owners HOSTED BY OCEAN FIRST BANK PRESENTED BY MONZO CATANESE HILLEGASS, P.C. SPEAKER: DANIEL S. REEVES, ESQUIRE Topics Tax Overview Trust Ownership Intentionally Defective
More informationQuick Concepts. Now Available in JH Illustrator JOHN HANCOCK ADVANCED MARKETS. Providing you with tools you need to close cases
Quick Concepts Now Available in JH Illustrator JOHN HANCOCK ADVANCED MARKETS Providing you with tools you need to close cases FOR AGENT USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC. Quick Concepts,
More informationFinancing strategies for survivorship life insurance owned by an irrevocable life insurance trust (ILIT)
Financing strategies for survivorship life insurance owned by an irrevocable life insurance trust (ILIT) Annual Basic description (all of the trust agreements used for these ILITs are assumed to be grantor
More informationEstate Planning. Uncertain Times. IRS Circular 230 Disclosure
Estate Planning IRS Circular 230 Disclosure To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments)
More informationDetermined by Seller (not to exceed life expectancy) Deductibility of Interest Depends on Property None
chapter chapter 7 SCIN Private Annuity Term of Payment Determined by Seller (not to exceed life expectancy) Life of Annuitant Deductibility of Interest Depends on Property None Buyer s Adjusted Basis Purchase
More informationUnderstanding CRTs. A Summary of Charitable Remainder Trusts (CRTs) VLC
Understanding CRTs A Summary of Charitable Remainder Trusts (CRTs) VLC0439-0917 GET READY FOR RETIREMENT If your retirement planning objectives include lifetime income planning, estate tax reduction, 1
More informationWILLMS, S.C. LAW FIRM
WILLMS, S.C. LAW FIRM TO: FROM: Clients and Friends of Willms, S.C. Attorney Andrew J. Willms DATE: October 15, 2012 RE: Year-End Tax Planning for 2012 As you are probably well aware, most of the changes
More informationDelay your Social Security benefits, not your retirement fun
Retirement Perspectives Delay your Social Security benefits, not your retirement fun Not a bank or credit union deposit, obligation or guarantee May lose value Not FDIC or NCUA/NCUSIF insured Not insured
More informationGIFT AND ESTATE TAX PLANNING GUIDE
I. Tax Free Annual Exclusion Gifts - No Reporting Required, Per Donee Per Donor A. See Reference Chart below which illustrates amounts that can be gifted tax free annually: Number of Grandparents/Parents
More informationEstate Freeze Transactions
STRATEGIC THINKING The idea behind an estate freeze is to transfer value to the next generation at a low current value and to remove appreciation after the transfer date from the transferor s estate. Estate
More informationCharitable Planning CLIENT GUIDE
Charitable Planning CLIENT GUIDE CHARITABLE PLANNING Giving to charity can provide many benefits and opportunities, both to the charity and to you. The charity, benefits from a donation that can help further
More informationWhite Paper: Irrevocable Life Insurance Trusts
White Paper: www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC, MSRB Page 2 Table of Contents... 3 What
More informationProducers Guide. A dual strategy for life insurance protection and opportunities for future supplemental income.
Producers Guide A dual strategy for life insurance protection and opportunities for future supplemental income. Symetra Accumulator IUL Indexed Universal Life Insurance LIM-1411 4/18 AGENT AND ADVISOR
More informationUnderstanding TRUSTS. A Summary of Trusts for Estate Planning VLC
Understanding TRUSTS A Summary of Trusts for Estate Planning VLC0009-0417 TABLE OF CONTENTS What Is a Trust.... 1 Who s Who in a Trust.... 2 Types of Trusts... 3 Taxation.... 4 Frequently Asked Questions....
More informationZero Estate Tax Strategy
Zero Estate Tax Strategy AN STRATEGY USING LIFE INSURANCE, A FOUNDATION, AND WE ALTH REPL ACEMENT TRUST The Prudential Insurance Company of America 0257697 0257697-00004-00 Ed. 12/2016 Exp. 06/20/2018
More informationUnderstanding Charitable Life Insurance Trusts
Understanding Charitable Life Insurance Trusts Understanding Charitable Life Insurance Trusts DISCUSSION TOPICS What is a Charitable Life Insurance Trust? How Does a Charitable Life Insurance Trust Work?
More informationA Deep Dive Into Private Financing
A Deep Dive Into Private Financing Bob Finnegan, J.D., CLU, AEP Sr. VP, Advanced Sales Attorney, Highland Capital Brokerage bfinnegan@highland.com 518.424.8928 Funding Hierarchy (Simple to Complex) Clients
More informationWealth Transfer Planning
Wealth Transfer Planning Advanced Markets Client Guide Repositioning assets to maximize wealth. John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company of New York
More informationEstate Planning Client Guide
CLIENT GUIDE Advanced Markets Estate Planning Client Guide LIFE-5711 6/17 TABLE OF CONTENTS Why Create an Estate Plan?... 1 Basic Estate Planning Tools... 2 Funding an Irrevocable Life Insurance Trust
More informationtax strategist the A simple plan Installment sale offers alternative to complex estate planning strategies Balance competing
the May/June 2008 tax strategist A simple plan Installment sale offers alternative to complex estate planning strategies Balance competing goals with a QTIP trust Take care when choosing IRA beneficiaries
More informationPACIFIC DISCOVERY PROTECTOR IUL
CLIENT GUIDE Pacific Life Insurance Company PACIFIC DISCOVERY PROTECTOR IUL Flexible Premium Indexed Universal Life Insurance 1 A Next Step in Your Wealth Management 17-135 1 Policy form #P15IUL and S17PDP
More informationTRUST AND ESTATE PLANNING GLOSSARY
TRUST AND ESTATE PLANNING GLOSSARY What is estate planning? Estate planning is the process by which one protects and disposes of his or her wealth, sometimes during life and more often at death, in accordance
More informationWhite Paper: Dynasty Trust
White Paper: www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC, MSRB Page 2 Table of Contents... 3 What
More informationSession 1: Estate Planning Hot Topics: 2016
Session 1: Estate Planning Hot Topics: 2016 Christopher T. Rogers In this presentation we will review several current estate planning/estate tax topics, including (i) an introduction to the Beneficiary
More informationWealth Transfer Planning Opportunities
ADVANCED MARKETS BEYOND TAX REFORM Wealth Transfer Planning Opportunities BECAUSE YOU ASKED As part of the Tax Cuts and Jobs Act of 2017, the estate tax, gift, and GST exemptions have been increased from
More informationSales Strategy. Privately Financed Life Insurance. Advanced Markets Sales Strategy Private Financing WHAT IS A PRIVATELY FINANCED LIFE INSURANCE PLAN?
Sales Strategy Privately Financed Life Insurance WHAT IS A PRIVATELY FINANCED LIFE INSURANCE PLAN? A privately financed life insurance plan, also known as personal financing or self-financing, is the funding
More informationCounselor s Corner. SLAT: Is It Possible to Have Access to Trust Assets Without Estate Inclusion?
Counselor s Corner SLAT: Is It Possible to Have Access to Trust Assets Without Estate Inclusion? Situation: Most gift tax exemption estate strategies require assets to be given away with no strings attached.
More informationStrategically Planning Dealership Transition
Strategically Planning Dealership Transition Keith Ely Managing Partner Lawrence, KS (785) 842-6498 Keith@KEAAdvisors.com Nicholas J. Houle, CPA, MBT Principal Minneapolis, MN 612-376-4760 nicholas.houle@claconnect.com
More information678 TRUSTS: PLANNING STRATEGIES AND PITFALLS By Marvin E. Blum
678 TRUSTS: PLANNING STRATEGIES AND PITFALLS By Marvin E. Blum Typically, when a client is considering options to help reduce estate taxes, the client must consider techniques that require the client to
More informationDynasty Trust. Clients, Business Owners, High Net Worth Individuals, Attorneys, Accountants and Trust Officers:
Platinum Advisory Group, LLC Michael Foley, CLTC, LUTCF Managing Partner 373 Collins Road NE Suite #214 Cedar Rapids, IA 52402 Office: 319-832-2200 Direct: 319-431-7520 mdfoley@mdfoley.com www.platinumadvisorygroupllc.com
More informationSpousal Lifetime Access Trust (SLAT)
Spousal Lifetime Access Trust (SLAT) Concept A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust that can own permanent life insurance and/or other assets. A SLAT permits the non-insured spouse
More informationNon-Citizen Spouse. Estate Planning Using Qualified Domestic Trusts (QDOTs) and Irrevocable Life Insurance Trusts (ILITs)
Guiding you through life. SALES STRATEGY NEEDS ANALYSIS Non-Citizen Spouse Estate Planning Using Qualified Domestic Trusts (QDOTs) and Irrevocable Life Insurance Trusts (ILITs) As large numbers of people
More informationTHE FAMILY BANK TRUST Advanced Planning for Couples
THE FAMILY BANK TRUST Advanced Planning for Couples Steven R. Owens, J.D. Attorney and Counsellor at Law 6041 South Syracuse Way, Suite 103 Greenwood Village, Colorado 80111 2008 The Law Office of Steven
More informationPremium Financing. Prepared for: Mr. & Mrs. Client July 6, 2015
Premium Financing Prepared for: Mr. & Mrs. Client July 6, 2015 Mr. Agent Highland Capital Brokerage 3535 Grandview Parkway, Suite 600 Birmingham, AL 35243 205-263-9283 kmiller@highland.com Premium Financing
More informationLife Insurance in Retirement Planning HOW PERMANENT LIFE INSURANCE CAN HELP MEET YOUR DEATH BENEFIT NEEDS AND ENHANCE YOUR RETIREMENT.
Life Insurance in Retirement Planning HOW PERMANENT LIFE INSURANCE CAN HELP MEET YOUR DEATH BENEFIT NEEDS AND ENHANCE YOUR RETIREMENT. 0251133 Ed. 07/2017 0251133-00007-00 Exp. 07/07/2018 Did You Know?
More informationBenefits of Using Trusts with Selling Your Business
Select Portfolio Management, Inc. Dave Jones, MBA Wealth Adviser 120 Vantis, Suite 430 Aliso Viejo, CA 92656 949-975-7900 dave.jones@selectportfolio.com www.selectportfolio.com Benefits of Using Trusts
More informationCHAPTER SEVEN Gift Strategies
CHAPTER SEVEN Gift Strategies Reasons for and against making lifetime gifts: Pro: Tax savings (federal income, gift and estate taxes); possible state income tax savings (in other jurisdictions than Texas)?
More informationGeneral Advantages of Giving
Gift Planning Strategies in Light of the $5 Million Exclusion Carol A. Cantrell Houston, TX A Firm on the Leading Edge of Client Service General Advantages of Giving Gifts exclude future appreciation from
More informationWhen interest rates are low, it s high time for estate planning. Asset protection: Back to basics
Insight on Estate Planning When interest rates are low, it s high time for estate planning Asset protection: Back to basics Trusts and taxes Understanding how one affects the other can benefit your estate
More informationLincoln knows accumulation Client profiles for wealth accumulation planning with Lincoln life insurance
Lincoln knows accumulation Client profiles for wealth accumulation planning with Lincoln life insurance Lincoln s diverse portfolio has solutions that provide: Market-driven growth opportunities Upside
More informationBASICS * Irrevocable Life Insurance Trusts
KAREN S. GERSTNER & ASSOCIATES, P.C. 5615 Kirby Drive, Suite 306 Houston, Texas 77005-2448 Telephone (713) 520-5205 Fax (713) 520-5235 www.gerstnerlaw.com BASICS * Irrevocable Life Insurance Trusts Synopsis
More informationCHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH #600 DENVER, CO DISCLAIMER
CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH #600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER The federal tax discussions in this memorandum will be affected by any future
More information